Cost Effectiveness

Cost Analysis

4 types

• Program Cost Analysis
• Cost of Illness
• Cost-Effectiveness Analysis
• Cost-Benefit Analysis

Program Cost Analysis

The cost of implementing a program or intervention

Financial costs - expenditures for resources, such as staff salaries, facility rent, and medical supplies.

Economic costs- financial costs plus the value of resources that are not paid for (but must be monetized), such as volunteer time, caregiver time, and donated space and equipment.

Inputs

• Direct Cost
• Productivity losses
• Intangible costs

STI Example

Why Important?

• Scare resources
• Return on Investment
• Stakeholders
• Understanding the cost of implementation

Cost-Effectiveness Analysis(CEA)

A way to examine both the costs and health outcomes of one or more interventions.

An intervention can only be considered cost effective compared to something else.

Inputs

• Net Cost
• Changes in health outcomes

STI Example

Why Important??

• Health and cost impacts of different interventions
• How much an intervention may cost

Cost-Benefit Analysis(CBA)

A way to compare the costs and benefits of an intervention

Both CEA and CBA look at health outcomes..but CBA puts a monetary value on them.

Inputs

• Costs
• Benefits

Why Important?

• Economic value provided to society